Several key factors influence solar panel installation costs. Hardware costs are the system’s materials, while soft costs include labor and permits.
The cost of a solar power system depends on several variables, including its size and location. To determine the solar panel installation cost breakdown, start by calculating the total system plus installation cost and subtracting the value of any applied incentives.
Equipment
Before starting a solar energy installation, some important equipment decisions must be made. These will have a significant impact on how much the system costs and on your long-term savings.
Generally speaking, the more panels you have in your solar array, the lower your upfront cost. Many factors go into determining how many panels you need, including the amount of sunlight your home receives daily, whether you want to offset all your electricity consumption or just a portion of it, and more.
A good place to start is by reviewing your electric bills and calculating how many kilowatt hours (kWh) you use each month. You can also bring your electric bill to a consultation with a solar contractor, which will help them understand your needs better and recommend the right number of panels for you. You can use a solar calculator to estimate your equipment costs. This will also factor in the prices of local materials and labor. You can compare quotes with pre-screened installers from there to find the best deal.
Batteries
A solar panel system only has batteries to store excess energy when the sun isn’t shining. Batteries vary in cost based on their capacity and type. For example, a battery system to power appliances during evenings will look much different than a battery that’ll keep you powered through a week-long natural disaster.
Battery size and voltage also factor into the price. Lead-acid batteries are an established technology commonly used by off-grid solar energy systems. They are affordable, long-lived, and can be easily serviced. Absorbent glass mat (AGM) batteries are a more advanced alternative to lead-acid. They have a longer lifespan and do not produce harmful hydrogen gas when charged or used.
Other solar installation costs include maintenance fees and utility company charges. A maintenance fee covers cleaning or inspections needed to maintain your solar panels. Utility company charges include the difference in generation and distribution rates when a solar system is connected to the grid. It’s important to understand these charges before going solar. This will help you predict your payback period.
Installation
In this step, a technician from your solar installer will install the electric wiring that will connect the panels, gather energy, and send it to your home. This is one of the most important parts of the installation process, as bad wiring can be dangerous for you and your family.
Before beginning this step, your electrician will inspect your roof and make any necessary repairs. Depending on the findings of this inspection, your contractor may suggest additional roof work or even recommend a complete replacement of your roof.
Once the electrical wiring and rooftop installation are complete, a representative from your local utility company will inspect the project and approve it for grid connection (if you choose to participate in net metering). You’ll then be able to turn on your system, generate free power, and save monthly money on your electricity bill. This inspection and the associated fee for connecting to the grid typically cost a couple hundred dollars, which is built into your contract price for turnkey installations. However, some utility companies charge nothing at all for this service.
Permits
Depending on where you live, there are different requirements and processes for solar permits. The electric utility servicing your area may require detailed documents on your solar system’s location and zoning, roof design and condition, electrical wiring plans, and solar components as part of the permit application. In addition, utility-scale solar installations are subject to additional rules and inspections for safety reasons, which can increase the time required for a permit.
You may also need approval from your homeowner’s association, especially if you live in a historic neighborhood. It is important to remember that installing a residential solar power system without getting all the necessary paperwork could lead to fines or removal of the system later. Many solar installation companies include the costs of permitting and inspections in their turnkey quote, so you will not need to worry about paying extra fees later. Some states have even capped the cost of permits to make the process more consistent across cities and towns.
Solar Panels
The number of solar panels needed to offset your energy usage is crucial to overall system costs. This number varies widely and depends on your household’s electricity usage, home location, roof size, and other variables.
Solar panels comprise multiple photovoltaic cells that convert sunlight into direct electrical current (DC). The panel produces energy, and then an inverter turns this DC into an alternating current that systems in your house can use. Many different types of solar panels are available with varying wattages and other features. Your solar professional will help you determine the right panels for your home.
If you opt for a grid-tie solar system, you can sell any excess energy to the local utility company. This process reduces your utility bills and can even increase the value of your home. Homes with solar panels sell for four percent more than those without them. This increase in your home’s value is a major incentive to install a solar power system.